Deluxe Corporation Reports Q1 2026 Revenue Increase to $538.1 Million and Net Income Surge

Deluxe Corporation reported its financial results for the first quarter of 2026, revealing a slight increase in total revenue to $538.1 million, up from $536.5 million in the same period last year. The growth was primarily driven by a 12.5% year-over-year increase in revenue from its payments and data businesses, which collectively generated significant gains despite a decline in the Print segment due to ongoing demand softness. Net income surged to $35.8 million, a 155.7% increase compared to $14.0 million in the prior year, reflecting effective cost management and a $5.1 million gain from the sale of the Safeguard small business distributor channel.

The company’s operational efficiency was highlighted by a 7.1% reduction in selling, general, and administrative (SG&A) expenses, which fell to $209.3 million from $225.2 million. This decrease was attributed to workforce adjustments and optimized marketing strategies. Additionally, adjusted EBITDA rose to $117.9 million, a 17.7% increase from $100.2 million in the previous year, with an adjusted EBITDA margin improvement to 21.9% from 18.7%. The Print segment, however, faced challenges, with revenue declining by 10% to $262.2 million, largely due to reduced demand for promotional products and the impact of the recent business exit.

Deluxe's strategic focus on its core growth businesses is evident in its recent divestiture of the Safeguard small business distributor channel, which generated net proceeds of $22.8 million. This transaction is expected to enhance the company's focus on its more profitable segments. The company also reported a decrease in total debt by $32.3 million compared to year-end 2025, reflecting disciplined capital allocation and a commitment to reducing leverage.

As of March 31, 2026, Deluxe held cash and cash equivalents of $27.2 million, with an additional $380.9 million available under its revolving credit facility. The company anticipates capital expenditures between $90 million and $100 million for the full year, aimed at supporting growth and innovation across its product categories. Looking ahead, Deluxe remains cautious about macroeconomic conditions, including inflation and consumer sentiment, which could impact future performance. The company is prepared to adjust its capital allocation strategy as needed to navigate these challenges while continuing to focus on operational efficiency and profitable growth.